(Reuters) - Nelson Peltz’s Trian Fund Management LP is nearing a settlement with Legg Mason Inc that will give the activist hedge fund three or four seats on the mutual fund’s board and avoid a proxy fight, the Wall Street Journal reported on Friday, citing people familiar with the matter.

Earlier this week, Reuters reported that Trian may push Legg Mason to implement changes to boost returns, the second time in 10 years that Trian has targeted the company.

Legg Mason has said it plans to manage costs more effectively to improve profitability as, like its rivals, it has been hit hard by investors shifting to less expensive index funds offered by larger firms, including Vanguard Group.

Both companies did not immediately respond to a Reuters request for comment.